A

SYNOPSIS REPORT
ON
CAPITAL MARKET
AT
KARVY STOCK BROKING LTD
Submitted
By
L. HARSHITHA
H.T.NO: 1304-20-672-088
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA POST GRADUATE COLLEGE

PEERZADIGUDA

(Affiliated to Osmania University)

2020-2022
 AURORA POST GRADUATE COLLEGE
PEERZADIGUDA

Department of Management

SYNOPSIS

Title of the Project CAPITAL MARKET

Student Name : L. HARSHITHA

Hall Ticket Number : 1304-20-672-088

Signature of the Student :

Signature of the Guide :

 INTRODUCTION

A capital market is a market for securities (debt or equity), where business

enterprises (companies) and governments can raise long-term funds. It is defined as a market

in which money is provided for periods longer than a year, as the raising of short-term funds

takes place on other markets (e.g., the money market). The capital market includes the stock

market (equity securities) and the bond market (debt). Financial regulators, such as the UK's

Financial Services Authority (FSA) or the U.S. Securities and Exchange Commission (SEC),

oversee the capital markets in their designated jurisdictions to ensure that investors are

protected against fraud, among other duties.

Capital markets may be classified as primary markets and secondary markets. In primary

markets, new stock or bond issues are sold to investors via a mechanism known as

underwriting. In the secondary markets, existing securities are sold and bought among

investors or traders, usually on a securities exchange, over-the-counter, or elsewhere.

The Capital market is a market for financial assets which have a long or

indefinite maturity. Generally, it deals with long term securities which have a maturity period

of above one year. Capital market may be further divided into three types i.e., Industrial

securities market, Government securities market and Long term loans market. Industrial

securities market is further divided into two types i.e., primary market or new issue market

and secondary market or stock exchange. Government securities market is also called as Gilt-

Edged securities market. It is the market where Government securities are traded. Long term

loans market is divided into three types Term loans market, Mortgages market and financial

guarantees market.

Absence of capital market instruments acts as a deterrent to capital formation and

economic growth. Resources would remain idle if finances are not funneled through the

capital market. The capital market instruments serves as an important source for the
productive use of the economy’s savings. It mobilizes the savings of the peoples for further

investment and thus avoids their wastage in unproductive uses. It provides incentives to

saving and facilitates capital formation by offering suitable rates of interest as the price of

capital. It provides an avenue for investors, particularly the household sector to invest in

financial assets which are more productive than physical assets. It facilitates increase in

production and productivity in the economy and thus, enhances the economic welfare of the

society.

CAPITAL MARKET:

A capital market is a market for securities (debt or equity), where business enterprises

(companies) and governments can raise long-term funds. It is defined as a market in which

money is provided for periods longer than a year, as the raising of short-term funds takes

place on other markets (e.g., the money market). The capital market includes the stock market

(equity securities) and the bond market (debt). Financial regulators, such as the UK's

Financial Services Authority (FSA) or the U.S. Securities and Exchange Commission (SEC),

oversee the capital markets in their designated jurisdictions to ensure that investors are

protected against fraud, among other duties.

Capital markets may be classified as primary markets and secondary markets. In primary

markets, new stock or bond issues are sold to investors via a mechanism known as

underwriting. In the secondary markets, existing securities are sold and bought among

investors or traders, usually on a securities exchange, over-the-counter, or elsewhere.

A market is any one of a variety of different systems, institutions, procedures, social

relations and infrastructures whereby persons trade, and goods and services are exchanged,

forming part of the economy. It is an arrangement that allows buyers and sellers to exchange

things. Markets vary in size, range, geographic scale, location, types and variety of human

communities, as well as the types of goods and services traded. Some examples include local

farmers’ markets held in town squares or parking lots, shopping centers and shopping malls,

international currency and commodity markets, legally created markets such as for pollution

permits, and illegal markets such as the market for illicit drugs.

In mainstream economics, the concept of a market is any structure that allows buyers and

sellers to exchange any type of goods, services and information. The exchange of goods or

services for money is a transaction. Market participants consist of all the buyers and sellers of

a good who influence its price. This influence is a major study of economics and has given

rise to several theories and models concerning the basic market forces of supply and demand.

There are two roles in markets, buyers and sellers. The market facilitates trade and enables

the distribution and allocation of resources in a society. Markets allow any tradable item to be

evaluated and priced. A market emerges more or less spontaneously or is constructed

deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of

services and goods.

Historically, markets originated in physical marketplaces which would often develop into —

or from — small communities, towns and cities.

Types of markets

Although many markets exist in the traditional sense — such as a marketplace — there are

various other types of markets and various organizational structures to assist their functions.

The nature of business transactions could define markets.

NEEDS & IMPORTANCE OF STUDY

Capital market deals with long term funds. These funds are subject to uncertainty and risk. It

supplies long term funds and medium term funds to the corporate sector. It provides the

mechanism for facilitating capital fund transactions. It deals with ordinary shares, debentures

and stocks and securities of the governments. In this market the funds flow will come from

savers. It converts financial assets in to productive physical assets. It provides incentives to

savers in the form of interest or dividend to the investors.

SCOPE OF THE STUDY

The current study involves a variety of work in economics, accounting and finance in this.

Valuation of stocks and functions of the stock markets, valuation of bonds convertible

debentures and market for debt, issue market and merchant banking, market efficiency,

dividends, bonus and right issues rates of return and regulations.

OBJECTIVES OF THE STUDY

 To study about the Capital Market Instruments.

 To study about Dematerialization or Demit in the stock exchange

for easy transfer and error prone system.

 To study about the latest and future developments is the stock exchange system.

 To study about recent development in derivatives market.

RESEARCH & METHODOLOGY

The data collection methods include both the Primary and Secondary Collection

methods.

Primary Collection Methods:

This method includes the data collected from the personal discussions with

the authorized clerks and members of the Exchange.

Secondary method: The secondary data collection method includes:

 Websites

 Journals

 Text books

Method Used For Analysis of Study

The methodology used for this purpose is Survey and Questionnaire Method. It is a time

consuming and expensive method and requires more administrative planning and supervision.

It is also subjective to interviewer bias or distortion.

Sample Size: 100 respondents

Sampling Unit: Businessmen, Government Servant, Retired Individuals

Tools and techniques:

The SPV, also known as a SPRV or a SPE, is not owned by the issuing insurance company; it

is an off-balance sheet entity specifically created to act as a no admitted reinsurer providing

reinsurance to the issuer. All SPVs are located offshore for this reason. However, a number of

onshore captive domiciles have legislation permitting the establishment of what are called

Special Purpose Financial Captives (SPFC). A SPFC can fulfill the role of the offshore SPV.

Vermont and South Carolina allow SPFCs.

The SPV requires a financial vehicle into which it deposits the investor funds, so a trust is

established for that purpose.

LIMITATIONS OF THE STUDY

 Fortyfive days were insufficient to go on with the study. since the time constraint was

not enough.

 Most of the implementation and strategies studied were not properly used.

 Improper communication channel with speculators.

 A small difference makes feel difficult about theory and practices.

 An improper absence of information about technology.